Chimei gross profit margin turns positive in Q3

Chimei Innolux, a leading flat panel manufacturer, yesterday reported gross profit margin of 3.3 percent for the third quarter, turning positive for the first time in two years.

The firm made the remarks during its quarterly investors' conference yesterday.

For the July-September period, the firm had sales of NT$129.532 billion, a rise of 3.3 percent from the second quarter.

While gross profit margin turned positive, it did not help the firm turn a profit. For the third quarter, operating loss was NT$2.214 billion and net loss NT$3.72 billion, translating into a loss per share of NT$0.51, a far more narrow result than the loss per share of NT$1.35 for the second quarter.

The firm's large-size panel shipments reached record highs in August and September. Capital expenditure for third quarter was NT$4.567 billion, and the figures for this year and next are expected to be NT$18 billion.

In the third quarter, Chimei Innolux shipped 40.7 million large-size panels, a rise of 15.3 percent from the second quarter. Average sale price fell to US$84.

Also in the third quarter, panels for LCD TV applications accounted for 43 percent, of which 40-inch and larger panels accounted for 19 percent.

Separately, Chimei Innolux yesterday denied reports that it will invite Chinese firms to invest in the company.

The reports said that Chimei recently met with representatives from the China Electronics Group and the Hisense Group to discuss investment opportunities. Chimei denied meeting with China Electronics officials yet acknowledged hosting Hisense representatives, who it said only paid a regular visit.